Foster’s Group Limited (Foster’s) today received notification from the Australian Commissioner of Taxation (the Commissioner) that it will receive assessments for total primary tax of $548.7 million and penalties and interest of $302 million. Foster’s expects to receive the assessments by 30 June 2007.

Foster’s view is that its maximum exposure in relation to these and related assessments is limited to $340.9 million for primary tax and $204.8 million for penalties and interest, based on the positions adopted by the Commissioner.

Issues covered by these assessments were the subject of two previous company announcements, on 31 May and 25 September 2006, disclosing total potential primary tax exposure of $379 million, with an additional unquantified amount of potential penalties and interest.

The Commissioner will issue the assessments for the higher amounts in order to cover all possible alternative positions that may be argued in Federal Court proceedings currently underway.

In accordance with the Commissioner’s published guidelines, Foster’s expects to pay $257 million to the Commissioner in respect of the assessments by 3 August 2007. This amount is fully refundable in the event that the matter is resolved in favour of Foster’s.

Foster’s intends to object to the assessments. Foster’s remains confident of the position it has adopted and intends to defend vigorously the deduction claims.

The assessments relate to the utilisation of tax losses associated with the funding of the Elders Finance Group (EFG) in the 1980s and 1990s. The availability of tax losses associated with the funding of EFG is currently the subject of Federal Court proceedings initiated by Foster’s. Resolution of the issues to be dealt with in the Federal Court will determine the validity of assessments to be issued by the Commissioner.